[Federal Register Volume 76, Number 54 (Monday, March 21, 2011)]
[Notices]
[Pages 15309-15311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6568]
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FEDERAL DEPOSIT INSURANCE CORPORATION
Privacy Act of 1974, as Amended; System of Records; Nationwide
Mortgage Licensing System and Registry
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Notice of New Privacy Act System of Records.
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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) proposes to
add one new system of records to its existing inventory of record
systems subject to the Privacy Act of 1974 (5 U.S.C. 552a). This new
system of records is entitled Nationwide Mortgage Licensing System and
Registry and will be used to register residential mortgage loan
originators employed by federally regulated depository institutions as
required by the Secure and Fair Enforcement for Mortgage Licensing Act
(S.A.F.E. Act), 12 U.S.C. 5101. We hereby publish this notice for
comment on the proposed system of records.
DATES: Comments on the proposed system of records must be received on
or before April 20, 2011. The proposed systems of records will become
effective 45 days following publication in the Federal Register, unless
a superseding notice to the contrary is published before that date.
ADDRESSES: You may submit written comments by any of the following
methods:
Agency Web site: Located at http://www.fdic.gov/regulations/laws/federal/propose.html.
Follow instructions for submitting comments on this Web site.
E-mail: Send to [email protected]. Include ``Notice of New
System of Records'' in the subject line.
Mail: Send to Hugo A. Zia, Supervisory Counsel, FOIA/
Privacy Act Group, Attention: Comments, New Privacy Act System of
Records, 550 17th Street, NW., Washington, DC 20429.
All submissions should refer to ``Notice of New Privacy Act System of
Records.'' By prior appointment, comments may also be inspected and
photocopied in the FDIC Public Information Center, 3501 North Fairfax
Drive, Room E-1005, Arlington, Virginia 22226, between 9 a.m. and 4
p.m. (EST), Monday to Friday.
FOR FURTHER INFORMATION CONTACT: Hugo A. Zia, Supervisory Counsel,
FOIA/Privacy Act Group, FDIC, 550 17th Street, NW., Washington, DC
20429, (703) 562-2671.
SUPPLEMENTARY INFORMATION: In accordance with the Privacy Act of 1974,
as amended, the FDIC has conducted a review of its Privacy Act systems
of records and has determined that it needs to add one new system of
records to cover personal information submitted by residential mortgage
loan originators and maintained in the Nationwide Mortgage Licensing
System and Registry (NMLSR) pursuant to the S.A.F.E. Act. The new
system of records is designated as FDIC-30-64-0032 (Nationwide Mortgage
Licensing System and Registry).
The S.A.F.E. Act requires an employee of a bank, savings
association, credit union or Farm Credit System institution and certain
of their subsidiaries that are regulated by a Federal banking agency or
the Farm Credit Administration who acts as a residential mortgage loan
originator to register with the NMLSR, obtain a unique identifier, and
maintain this registration. The NMLSR collects and stores information
concerning a residential mortgage loan originator's identity including
personal history and experience and may include information related to
any administrative, civil, or criminal findings by any governmental
jurisdiction. The information will be collected by entering information
online into the NMLSR Web site. Once collected, the information will be
maintained in the NMLSR electronic system in a secured environment.
The NMLSR is a Web-based system owned and operated by the State
Regulatory Registry LLC (SRR). SRR is a limited-liability company
established by Conference of State Bank Supervisors (CSBS) and the
American Association of Residential Mortgage Regulators as a subsidiary
of CSBS to develop and operate nationwide systems for State regulators
in the financial services industry. SRR has contracted with the
Financial Industry Regulatory Authority (FINRA) to build and maintain
the NMLSR system. FINRA operates similar systems in the securities
industry. More information about this system is available at http://mortgage.nationwidelicensingsystem.org/.
FDIC-30-64-0032
SYSTEM NAME:
Nationwide Mortgage Licensing System and Registry.
SECURITY CLASSIFICATION:
Unclassified but sensitive.
SYSTEM LOCATION:
Financial Industry Regulatory Authority, 9509 Key West Avenue,
[[Page 15310]]
Rockville, MD 20850 (Background Check System data).
HP Enterprise Services Charlotte SMC, 9014 Research Drive,
Charlotte, NC 28262 (Production Center).
HP Enterprise Services Plano SMC, 6901 Windcrest Drive, Plano, TX
75024 (Dual Use Test and Disaster Recovery Facility).
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
Residential mortgage loan originators (MLOs) employed with: a
depository institution; a subsidiary owned and controlled by a
depository institution and regulated by a Federal banking agency; or an
institution regulated by the Farm Credit Administration.
CATEGORIES OF RECORDS IN THE SYSTEM:
Contains information documenting identity, including name and
former names, Social Security number, gender, date of birth, and place
of birth; home and business contact information; the date on which the
MLO becomes an employee with the institution; criminal history,
including the results of a background check; financial services-related
employment history; civil, arbitration, regulatory, and disciplinary
actions arising out of the MLO's financial services; and licensure
revocations and suspensions.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Section 1507 of the Secure and Fair Enforcement for Mortgage
Licensing Act (S.A.F.E. Act (12 U.S.C. 5106)).
PURPOSE(S):
The system is utilized to register MLOs employed by state and
federally regulated depository institutions in a national registry, as
required by the S.A.F.E. Act. The information is maintained to support
regulatory supervision while providing the general public with access
to certain information concerning MLOs including names and employment
histories.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
In addition to those disclosures generally permitted under 5 U.S.C.
552a(b) of the Privacy Act, all or a portion of the records or
information contained in this system may be disclosed outside the FDIC
as a routine use as follows:
(1) To appropriate Federal, State, and local authorities
responsible for investigating or prosecuting a violation of, or for
enforcing or implementing a statute, rule, regulation, or order issued,
when the information indicates a violation or potential violation of
law, whether civil, criminal, or regulatory in nature, and whether
arising by general statute or particular program statute, or by
regulation, rule, or order issued pursuant thereto;
(2) To a court, magistrate, or other administrative body in the
course of presenting evidence, including disclosures to counsel or
witnesses in the course of civil discovery, litigation, or settlement
negotiations or in connection with criminal proceedings, when the FDIC
is a party to the proceeding or has a significant interest in the
proceeding, to the extent that the information is determined to be
relevant and necessary;
(3) To a congressional office in response to an inquiry made by the
congressional office at the request of the individual who is the
subject of the record;
(4) To appropriate Federal, State, local authorities, and other
entities when (a) it is suspected or confirmed that the security or
confidentiality of information in the system has been compromised; (b)
there is a risk of harm to economic or property interests, identity
theft or fraud, or harm to the security or integrity of this system or
other systems or programs that rely upon the compromised information;
and (c) the disclosure is made to such agencies, entities, and persons
who are reasonably necessary to assist in efforts to respond to the
suspected or confirmed compromise and prevent, minimize, or remedy such
harm; and
(5) To appropriate Federal agencies and other public authorities
for use in records management inspections;
(6) To other Federal, State or foreign financial institutions
supervisory or regulatory authorities;
(7) To depository institutions or their subsidiaries for use in
registering employees as mortgage loan originators or renewing employee
registrations;
(8) To appropriate Federal, State, and local authorities, agencies,
arbitrators, and other parties responsible for processing any personnel
actions or conducting administrative hearings or corrective actions or
grievances or appeals, or if needed in the performance of other
authorized duties;
(9) To contractors, grantees, volunteers, and others performing or
working on a contract, service, grant, cooperative agreement, or
project for the Federal Government;
(10) To the appropriate governmental or self-regulatory
organizations when relevant to the organization's regulatory or
supervisory responsibilities or if the information is relevant to a
known or suspected violation of a law or licensing standard within that
organization's jurisdiction;
(11) To third parties when the information relates to the
employment history of, and publicly adjudicated disciplinary and
enforcement actions against, mortgage loan originators that is included
in Nationwide Mortgage Licensing System and Registry for access by the
public in accordance with section 1507 of the S.A.F.E. Act.
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
Storage:
Records are stored in electronic media.
Retrievability:
Records are retrieved by an individual MLO's name or unique
identification number and by the financial institution's name.
Safeguards:
Records are stored in a locked environment. Access to the system is
limited to users who satisfy a comprehensive background check. The
extent to which users have access is based on pre-determined roles. All
data exchanges take place over an encrypted network.
Retention and Disposal:
There is presently no records control schedule covering the
disposition and retention of FDIC records maintained in NMLSR. FDIC
staff will work with the National Archives and Records Administration
to establish disposition and retention authority for FDIC records
maintained in NMLSR. No data or other FDIC records of the system will
be destroyed prior to obtaining such disposition and retention
authority.
SYSTEM MANAGER(S) AND ADDRESS:
Director, Division of Risk Management Supervision, FDIC, 550 17th
Street, NW., Washington, DC 20429.
State Regulatory Registry LLC, 1155 Connecticut Avenue, NW., Fifth
Floor, Washington, DC 20036.
NOTIFICATION PROCEDURES:
Records created by a MLO in the Nationwide Mortgage Licensing
System and Registry may be accessed or amended directly by the MLO. If
assistance is required to access or amend such a record contact the
NMLS Call Center at (240) 386-4444 or State Regulatory Registry LLC,
1155 Connecticut Avenue, NW., Fifth Floor, Washington, DC 20036. Any
other individual wishing to determine if he or she is named in this
system of records
[[Page 15311]]
or who is seeking access or amendment to records maintained in this
system of records must submit a request in writing to [email protected]
or to the Legal Division, FOIA/Privacy Act Group, FDIC, 550 17th
Street, NW., Washington, DC 20429, in accordance with FDIC regulations
at 12 CFR part 310. The request to the FDIC should contain: (1) A
statement that it is made pursuant to the Privacy Act of 1974, (2) the
name of the system of records expected to contain the records requested
or a concise description of such system of records, (3) necessary
information to verify the identity of the requester, including the
requester's name and residence address, (4) a notarized statement
attesting to the requester's identity, and (5) any other information
that may assist in the rapid identification of the records for which
access or amendment is being requested.
RECORD ACCESS PROCEDURES:
Same as ``Notification Procedures'' above.
CONTESTING RECORD PROCEDURES:
Same as ``Notification Procedures'' above except that the envelope
mailed to the FDIC should be clearly marked ``Privacy Act Amendment
Request.'' A request to the FDIC for amendment of a record should
contain the information set forth in ``Notification Procedures'' above.
In addition, the request should also: (1) Specify the portion of the
record requested to be amended, and (2) describe the nature of and
reasons for each requested amendment in accordance with FDIC
regulations at 12 CFR part 310.
RECORD SOURCE CATEGORIES:
Information maintained in this system is obtained from MLOs who
submit information to the registry and the results of FBI background
checks.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
By order of the Board of Directors.
Dated at Washington, DC, this 15th day of March, 2011.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2011-6568 Filed 3-18-11; 8:45 am]
BILLING CODE 6714-01-P